Agenda Item: 3.2.13. Prepared by: S.Lee/J.Hooper Board Meeting: January 2017

Consideration for Affirmation of Teach Out Agreement

Between Career Point College and National American University

Summary of Request: Consider affirmation of a teach out plan between Career Point College (CPC) and National American University that will allow vocational nursing (VN) students and associate degree nursing (ADN) students an opportunity to proceed with their nursing education using the CPC curriculum provided by National American University in Austin and San Antonio, Texas. Historical Perspective:

CPC had established VN and ADN nursing education programs in Austin and San Antonio, Texas with a total enrollment of one thousand five hundred seventy (1570) students. When CPC abruptly closed all programs on October 16, 2016, there were no plans for the students to complete their education.

National American University (NAU) has a Board-approved baccalaureate degree nursing (BSN) education program in Austin. NAU offered to develop and provide a teach out plan for the CPC students.

Due to the complexity of the situation at state and national levels, involved constituents for the discussion and negotiation included: United States Department of Education (DOE); Higher Learning Commission (HLC) (North Central Association of Colleges and

Schools; Texas Higher Education Coordinating Board (THECB); Texas Workforce Commission (TWC); Texas Board of Nursing (BON); National American University (NAU); and Career Point College (CPC).

In addition, the U. S. Bankruptcy Court for the Western District of Texas and legal counsel from the Texas Attorney General’s office were involved.

Numerous telephone conferences were conducted to reach agreement for a teach out plan acceptable to all parties.

On November 29, 2016, a hearing was held at the U. S. Bankruptcy Court Western District of Texas San Antonio Division in San Antonio, Texas and an order was signed on November 30, 2016 that includes terms of a teach out agreement for National American University to teach out former Career Point College students (see Attachment #1). The Board of Nursing, Texas Workforce Commission, and the Texas Higher Education Coordinating Board were represented by the State Office of the Attorney General Bankruptcy & Collections Division Counsel.

Board staff held a conference call on December 1, 2016 with Lisa Hawthorne, PhD, MSN, RN, PHN, CNE, Dean-School of Nursing and Graduate Nursing Studies, Kelly Pennell, MSN, APRN, ACNS-BC, Program Director San Antonio ADN and VN Nursing Education Programs, Bobbie Bloch, RN, PhD, Program Director Austin ADN Nursing Education Program, and Carol Vetter, RN, BSN, CI, Program Director Austin VN Nursing Education Program, to provide consultation as the plans for the teach out are being further developed.

In order to solicit input from Board members, the Education Liaison Committee (ELC) was consulted for a recommendation to the Board at the January 2017 meeting. The ELC was provided with background information and a copy of the signed teach out agreement. The consensus among the ELC was to recommend affirmation of the teach out plan to the Board.

Pros and Cons: Pros:

The teach out plan provides a viable option for the number of students involved. NAU has agreed to place students into their progression plan and follow the CPC

curriculum. NAU has two campuses in Austin and will be able to use a CPC campus in San Antonio. The NAU agreement does not preclude students from seeking alternative arrangements

for completing their nursing education, such as transferring to another existing program. Cons:

The teach out plan will require Board Staff be involved in monitoring. Rationale for Staff Recommendation:

Board Staff recognize the unusual circumstances surrounding the sudden CPC closure and the resultant NAU teach out plan. However, given the large number of students affected, this option appears to be the most amenable approach to facilitate program completion without incurring additional curricular requirements for CPC students.

The ELC studied the teach out and voted to recommend affirmation of approval of the NAU teach out plan for CPC students.

Therefore, the program shall submit to Board Staff regular reports on the progress of students in the teach out plan. Data included in the reports should include, but not be limited to: roster of enrolled CPC students with progression, and retention numbers. Quarterly reports will be submitted to Board staff beginning March 31, 2017 and continuing for the duration of the teach out.

Staff Recommendation: Move to affirm approval of the NAU Teach Out Agreement between Career Point College and National American University with the terms and conditions in the Addendum based upon the recommendation from the Education Liaison Committee, and impose the requirements and conditions in the letter and attached Board Order.(See Attachment #2).

UNITED STATES BANKRUPTCY COURTWESTERN DISTRICT OF TEXAS

SAN ANTONIO DIVISION

IN RE:

DICKINSON OF SAN ANTONIO, INC.,

DEBTOR.

§§§§§

CASE NO. 16-52492

CHAPTER 11

ORDER GRANTING MOTION TO APPROVE TEACH-OUT AGREEMENT, ASMODIFIED BY ADDENDUM TO TEACH-OUT AGREEMENT BETWEEN CAREER

POINT COLLEGE AND NATIONAL AMERICAL UNIVERSITY

The Court has considered the Motion to Approve the Teach Out Agreement (Dkt. 7) filed

by the Debtor-in-Possession on November 2, 2016, together with the Addendum to the Teach-

Out Agreement signed by the Texas Higher Education Coordinating Board, the Texas Board of

Nursing, the Texas Workforce Commission and National American University ("NAU"),

attached hereto and incorporated by reference, (the "Addendum") and finds that it should be

approved for the reasons set forth on the record. Accordingly, it is

ORDERED that the Motion to Approve Teach-Out Agreement, as modified by the

Addendum, is GRANTED. It is further

The relief described hereinbelow is SO ORDERED.

Signed November 30, 2016.

__________________________________Ronald B. King

Chief United States Bankruptcy Judge

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ORDERED that to the extent of any conflict between the Teach-Out Agreement and the

Addendum, the terms of the Addendum shall control. It is further

ORDERED that this approval is effective upon entry of this Order and shall continue for

a period of two (2) years, commencing on the first day of NAU's next academic term following

entry of this Order. It is further

ORDERED that with respect to NAU's obligations under the Teach-Out Agreement:

a. NAU is authorized to enroll fonner Career Point College ("CPC") students definedin the Teach-Out Agreement as "Teach-Out Students" and to grant NAU credits,diplomas, and degrees in the programs of study listed in Exhibit A to the agreement.NAU will provide Teach-Out Students with the opportunity to complete an NAUdegree program as authorized by the Higher Learning Commission utilizingcurricula that meets all applicable requirements and has been previously approvedfor CPC by the Texas Board of Nursing ("TBN"), the Texas Higher EducationCoordinating Board ("THECB"), and the Texas Work Force Commission ("TWC").Any changes to curriculum must first be approved in writing by the TBN or otherrequired state agencies.

b. Other than Teach-Out Students, NAU will not enroll any students in the VocationalNursing Diploma program, the Associate of Applied Science in Nursing — RegisteredNurse program, or any other programs for which NAU does not have requisiteapprovals to offer in the State of Texas.

c. Other than for the purposes of the Teach-Out Agreement, this authorization to offerprograms and degrees shall not be construed as an approval for NAU to offer theVocational Nursing Diploma program, the Associate of Applied Science in Nursing —Registered Nurse program, or any other programs for which NAU does not haverequisite approvals to offer in the State of Texas.

d. The TBN authorizes Teach-Out Students who have completed their entire course ofstudy in the Associate of Applied Science in Nursing — Registered Nurse program,except for the jurisprudence and ethics course or the review course that was previouslyrequired by CPC, to be deemed as having completed the program and are eligible to sitfor the NCLEX. NAU will not require these students to complete any additionalcourses in order to be issued a degree by NAU.

e. Teach-Out Students in nursing programs will not be required to complete examscommonly known in the industry as "Green Light Exams" and/or "High-Stake ExitExams" or any other exam primarily designed to determine a student's ability tosuccessfully pass a licensing examination as a condition for graduation.

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f. To provide students with "practicums," NAU shall utilize the Clinical AffiliationAgreements between CPC and clinical sites that were previously approved by theTBN.

g. NAU will deliver courses to Teach-Out Students in the same delivery mode (online orbrick and mortar), on a space available basis, as they were receiving prior to theclosure of CPC.

h. If any Teach-Out Students who enroll at NAU should later wish to transfer toother colleges or institution, NAU will assist each student and provideinformation and support to facilitate such transfer.

i. NAU will use its best efforts to utilize the same CPC clinical and faculty andstaff, when possible. It is further

ORDERED that the Addendum relates solely to the activities associated with the Teach-

Out Agreement whereby former CPC students will be provided the opportunity to complete

educational programs with NAU and does not affect NAU's activities associated with NAU

locations that have been previously authorized and are currently operating in Allen, Austin,

Georgetown, Houston, Lewisville, Mesquite, and Richardson, Texas, offering undergraduate and

graduate programs that are approved by the THECB and TBN, as applicable. It is further

ORDERED that NAU's standing with the TBN and authorization to offer nursing

programs at NAU's existing campuses as previously approved by the TBN will in no way be

affected by the performance of former CPC students on the NCLEX. It is further

ORDERED that should NAU wish to enroll students in programs for which it is not

currently authorized in the State of Texas, NAU will request approvals through the normal

application process with all applicable regulatory and accreditation bodies, including but not

limited to, THECB, TBN, and TWC. It is further

ORDERED that NAU shall not perform any activities contemplated by the Teach-Out

Agreement until and unless the following additional conditions have been satisfied: (a) other

required approvals are obtained, including but not limited to, approval of the Texas Board of

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Nursing Education Liaison Committee, the Higher Learning Commission, and the U.S.

Department of Education, and (b) CPC completes the appropriate returns of Title IV federal

student aid funds to the U.S. Department of Education for former CPC students that were enrolled

at CPC as of its closure date and were unable to complete academic periods for which such Title

IV funds were disbursed. It is further

ORDERED that the Teach-Out Agreement and Addendum shall be governed by the laws

of the State of Texas and that this Court shall have concurrent jurisdiction with any appropriate

Texas State Court of competent jurisdiction to interpret and enforce the terms of the Teach-Out

Agreement and the Addendum. And it is further

ORDERED that NAU shall not employ, directly or indirectly (by way of example, but not

limited to, as a consultant), Mr. Lawrence D. Earle, the former President and shareholder of

Career Point College.

# # #

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Submitted by:

Hal F. MorrisTexas State Bar No. 14485410Ashley Flynn BartramTexas State Bar No. 24045883Todd HeaddenTexas State Bar No. 24096285Assistant Attorneys GeneralBankruptcy & Collections DivisionP. 0. Box 12548Austin, Texas 78711-2548P: (512) 463-2173 F: (512) 936-1409hal.morris@oag.texas.govashley.bartram@oag.texas.govtodd.headden@oag.texas.gov

ATTORNEYS FOR THE TEXAS HIGHEREDUCATION COORDINATING BOARD, THETEXAS BOARD OF NURSING AND THE TEXASWORKFORCE COMMISSION

Approved as to form and content:

/s/ William R. Davis, Jr. William R. Davis, JrLangley & Banack, Inc745 E Mulberry Ave, Suite 900San Antonio, TX 78212P: (210) 736-6600 F: (210) 735-6889wrdavis@langleybanack.com

ATTORNEY FOR THE DEBTOR

-and-

6, wt.( Fa4,-,%0Paul SedlacekNational American University5301 S. Hwy 16Rapid City, SD 55701P: (605) 394-4952 F: (605) 721.5240psedlacek@national.edu

GENERAL COUNSEL FOR NATIONALAMERICAN UNIVERSITY

5

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Agenda Item: 3.2.13. Attachment #2

Board Meeting: January 2017

January 19, 2017 Dr. Lisa Hawthorne, PhD, RN, PHN, CNE Dean - School of Nursing & Graduate Nursing Studies 5301 S. Highway 16 Rapid City, SD 57701 Dear Dr. Hawthorne: At the January 19-20, 2017 meeting, members of the Texas Board of Nursing discussed the teach out plan between Career Point College (CPC) and National American University that will allow vocational nursing (VN) students and associate degree nursing (ADN) students an opportunity to proceed with their nursing education using the CPC curriculum provided by National American University in Austin and San Antonio, Texas. Based upon the discussion and review of information and recommendation from the Education Liaison Committee, it was the decision of the Board to affirm approval of the NAU Teach Out Agreement between Career Point College and National American University with the terms and conditions in the Addendum, and impose the requirements and conditions in the letter and attached Board Order. If you have any questions, please contact Board Staff at susan.lee@bon.texas.gov or (512) 463-4631. Sincerely, Katherine A. Thomas, MN, RN, FAAN Executive Director cc. Kelley Pennell, MSN, RN, ACNS-BC, San Antonio, TX ADN and VN Program Director Carol Vetter, RN, BSN, CI, Austin, TX VN Program Director Bobbie Ann Bloch, RN, BSN, MSN, PhD, Austin, TX ADN Program Director

BEFORE THE TEXAS BOARD OF NURSING ************************************

ORDER OF THE BOARD

In the Matter of: Career Point College and National American University Teach Out Plan in Austin and San Antonio, Texas A public meeting of the Texas Board of Nursing, hereinafter referred to as the Board, was held on January 19, 2017, 333 Guadalupe, Tower II, Room 225, Austin, Texas, to consider the affirmation of the teach out plan between Career Point College and National American University in Austin and San Antonio, Texas. After review and due consideration of the filed materials, as well as the presentation by representatives from National American University, and other interested parties, if any, and the recommendation from the Education Liaison Committee, the Board hereby AFFIRMS the approval of the NAU Teach Out Agreement between Career Point College and National American University with the terms and conditions in the Addendum, and impose the requirements and conditions in the letter and attached Board Order.:

1. Comprehensive student rosters, noting progression in the program, will be submitted to Board Staff at the beginning of each enrollment period and continuing through the last cohort of students to be entered into the teach out program, or 12/31/18, at which time the teach out agreement ends.

2. Quarterly progress reports, which include at a minimum progression rates, withdrawals, and attrition rates will be submitted to Board Staff beginning March 31, 2017, and continuing for the duration of the teach out. Reports are to be submitted to Board Staff no later than the following dates: 3/31/17, 6/30/17, 9/30/17, 12/31/17, 3/31/18, 6/30/18, 9/30/18, 12/31/18, at which time the teach out agreement ends.

3. The Program Directors shall submit to Board Staff a comprehensive list of faculty

members, to include: name, license number, credentials, and area/s of teaching responsibility, on a quarterly basis beginning March 31, 2017 and ending December 31, 2018.

4. A complete list of clinical sites used for clinical learning experiences will be submitted to Board Staff at the beginning of each enrollment period and continuing through the last cohort of students to be entered into the teach out program, or 12/31/18, at which time the teach out agreement ends.

A Requirement is a mandatory criteria based upon program assessment directly related to the rules that must be addressed in the manner prescribed.

Entered this 19th day of January, 2017

__________________________________ Katherine A. Thomas, MN, RN, FAAN

Executive Director on Behalf of the Texas Board of Nursing